Second, if you know the relative strength of this buying or selling against all the other currency pairs, then this gives you the complete picture – if its strong, then again – it’s low risk.First, if you are basing your decision on universal buying or selling of a currency, then you are trading with the entire weight of the market, and not just on the analysis of one currency pair – it’s low risk.After all, you are now taking a position based on a view across the market. Would this information give you a high risk, medium or low risk trading position? And the answer……… is a low risk trading opportunity. Trading success is all about assessing risk and the probability of success on each trade. The relative strength of buying in the GBP/USD pair.Whether the USD is also being sold in all the other major currency pairs.Whether the GBP is also being bought in all the other cross currency pairs.Assume you have decided to buy the GBP/USD and have the following information to help you in your analysis:
After all a currency may be overbought (strong) or oversold (weak) but how strong is strong, and how weak is weak.Ĭonsider this for a moment. Equally for the US dollar, if it is sold universally in pairs such as the USD/CAD, the USD/JPY and others, then we can assume that the GBP/USD is rising as a result of strong buying of the pound universally, and strong selling across the market of the US dollar.įinally, we come to the third problem, which is trying to assess the strength of this buying or selling. If it is, then this is clearly a sign that the UK pound is being bought universally in the market. If the GBP/USD is bullish once again, is the British pound strong against all the other major currencies, such as the GBP/JPY, the GBP/CAD, the EUR/GBP etc. To compound this problem, every currency can be bought or sold against a myriad of other currencies. If this ‘pair’ were rising, is this being driven by strength in Google or weakness in Amazon? Almost impossible to analyse. Imagine if we had to do the same thing trading stocks for example.
If the GBP/USD for example is bullish, is this being driven by strength in the pound, or weakness in the US dollar. Each position is a judgment of the forces driving two independent markets.
Of all the four principle capital markets, the world of foreign exchange trading is the most complex and most difficult to master, unless of course you have the right tools! The reason for this complexity is not hard to understand.įirst currencies are traded in pairs. It will not work on the pre 600 build level of Metatrader 4. If you believe you can make this for me please send me an email and put "MAURICE" in your response so that I know you have read everything and when you believe you can have this done.PLEASE NOTE: The currency matrix indicator is only available for post 600 build levels on MT4. Also if there is a way you can back test it and show me the results I would greatly appreciate it. I realize that no one can make an indicator that is right 100% of the time so I would not ask for that, but hopefully around 80% would be great. I simply don't want to be glued to the computer 24/5. to 60 sec advance warning that a set-up might happen. Having a trend direction with a corner placement would be nice.Īlso I need a warning indicator (pop-up alert with adjustable sounds) that can give me 30 sec. I need a visual signal (pop-up alert with adjustable sounds) saying it will go up or down and that it will expire in the money 15 minutes later (7:15 PM) This indicator must fit my time frame of 5 to 15 minute expiry time for example, I just need to be sure that if its 7:00 PM and the option expires at 7:15 PM. This indicator should be written for Meta Trader 4 and it should be programmed to work with any Meta Trader version if possible. I trade 15 minute binary options and I need a indicator programmed to help me win more consistently.